Subscribe

The next big esports battleground: player contracts

A lawsuit from esports star Turner "Tfue" Tenney against the Faze Clan — alleging the organization takes 80% of his sponsorship revenue — has put a spotlight on how contracts in the industry are structured.

Why it matters: Tenny's situation could become a benchmark for the industry.

How it works: It's common for esports teams to bring in sponsors for individual players, take a percentage and block players from working with other competing sponsors.

Imagine LeBron James paying the Lakers a percentage of every Nike check and being blocked from making that money up elsewhere. That's why players are fighting it.

Reality check: The industry is projected to make $460 million in sponsorships and advertising in 2019. Most esports teams make a majority of their money from sponsorships and they're going to fight hard to keep it that way until they find new revenue streams.

What's next: We've already seen some unionization efforts around the industry with CounterStrike and the Overwatch league. Expect to see more as this battle plays out.

Go deeper

Protesters gather north of Lafayette Square near the White House during a demonstration against racism and police brutality, in Washington, D.C. on Saturday evening. Photo: Jose Luis Magana/AFP via Getty Images

Tens of thousands of demonstrators have been rallying in cities across the U.S. and around the world to protest the killing of George Floyd. Huge crowds assembled in Washington, D.C., Philadelphia and Chicago for full-day events on Saturday.

Despite a ban on large gatherings implemented in response to the coronavirus pandemic, protesters rally against racism in front of the American Embassy in Paris on June 6. Photo: Julien Mattia/Anadolu Agency via Getty Images

Tens of thousands of people have continued to rally in cities across the world against racism and show their support this week for U.S. demonstrators protesting the death in police custody of George Floyd.